Agricultural Property Relief Allowances Under Threat

Traditional agricultural buildings are an integral part of many farmyards. However, many are becoming redundant and a number are left abandoned because they are no longer suitable for modern farming practices.

It is important to note that HM Revenue & Customs are now questioning whether traditional buildings that are left to stand idle and fall into dis-repair should qualify for Agricultural Property Reflief (APR) for Inheritance Tax. This is very serious and could potentially leave thousands of farmers liable for heavy tax burdens.

We would recommend to farmers and landowners that steps are taken to ensure that buildings remain in constant agricultural use. Well maintained buildings would provide evidence that they are still used as part of farming operations. This would hopefully ensure that APR, which covers the agricultural value of the building, would be allowed. The excess would be covered by Business Property Relief (BPR) as long as the buildings were used in the farmer’s own business.

For further advice please contact Matthew Burton on m.burton@dentonclark.co.uk